Why is Air India always at a loss

Government puts Air India up for sale with no debt

MUMBAI - India wants to get rid of its deficit state carrier - urgently. The corona crisis does not simplify the sale of the airline, which is flying with a debt load in the billions. Now the government is apparently considering taking on almost all of the airline's debts in order to make it more attractive to buyers.

That still seems to be the better solution than liquidating the airline - because that would be the alternative to selling. Thousands of jobs are at stake. At the same time, Air India is once again becoming a burden to the government in the corona crisis and devours sums that would be needed at least as urgently elsewhere.

Taking over around 3.3 billion US dollars, with which the government has vouched for aircraft purchases, could actually mark the end of the lesser horror in this constellation.

Without the debt burden and with its slots at Heathrow, over 100 planes and a crew of over a thousand pilots, Air India could well be sold as an attractive opportunity to investors.

Nevertheless: as early as March 2019, the airline lost over a billion US dollars. On the one hand, the corona crisis has decimated the takeover opportunities of potential buyers, on the other hand it has probably increased the loss of Air India again. The last attempt to sell Air India failed in 2018.

© aero.de (boa) | Fig .: Ingo Lang | 16.09.2020 07:54